Thursday, 16 October 2014

Crude oil has reached it lowest level since 2011. and Natural gas is also going down. It is expected that Natural Gas may go up due to winter in Europe. But it is clear that energy market is running out of money. There are two possibilities behind this free fall world economy is not doing well specially US, EU and China. Either countries are over representing the development or there is over supply of crude oil in market. We can say that the availability of crude oil is more than the expectation.

Expect winter there is no any favorable news for Oil and Natural Gas Industry . The conflict in west Asia is going long . There is no possibility of early settlement. Energy market is running out of money. No one is ready to invest in energy market. If it is right then money drain condition will continue up to next 6 months.

There is some news that US is planning to export its Natural Gas to Europe during this winter to counter Russian Gas. The activity of Natural Gas export is going to large level. Europe depends on 30% on Russian Gas.

The low rate of Crude oil and Natural gas can change the number in budget of Russia , Saudi Arabia and other countries.There is also news that Libyan oil has again reached to Global Crude oil market.

Indian Guar Gum industry is totally depend on Natural Gas prices. It is a major concern that 60% Indian guar gum powder is used in Oil and Natural Gas Industry. If there will be some recovery in Natural gas prices then the drilling and fracking activity will start again on large level. The expectation of oversupply of Guar seed is also another major concern in guar gum Rates. This time if major supply period for Guar Seed.

In today's scenario Guar Seed rate may touch the level of 3500-3700/100 Kg during next three- four months. Hop that it will not touch. This is also festival season so there may be requirement of cash for farmers. Guar is a all time cash liquid commodity. There are chances that guar seed supply will saturate the Guar Seed Market. Farmer is emerging as major stockist for Guar Seed.

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Guar Gum seed Cultivation

India is theleadingproducer of guar and guar gum in the world. It share around 80 % production of world, rest ofmajorproduction comes fromPakistan. In India Rajasthan is leading producer of the guar seed and guar gum. It contributes around 70 % production of India. Haryana , Gujarat and Punjab are other Guar producing states in India.

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